Paraspace NFT protocol project consultant resigns as funds go missing

Paraspace NFT protocol project consultant resigns as funds go missing

The Paraspace NFT protocol project’s consultant Jay Yao has resigned after failing to overthrow the CEO as the missing funds debacle continues.

Yao and part of the team resign

Jay Yao announced today on Twitter that he and some team members had resigned from Paraspace. The news comes a week after the team clashed with Yubo Ruan, the Paraspace CEO, after funds were found missing. 

At the time, Ruan claimed he was innocent and was only framed to step down as CEO. He also slammed Yao and Thomas Schmodt, a Paraspace consultant, who had illegally accessed the company’s multi-sig accounts and social media platforms. 

In the Twitter post announcing his resignation, Yao mentioned they were still working on finishing their resolution. He also apologized to the community for being affected by the company’s internal issues. 

In his closing remarks, Yao mentioned that he wished Yubo and Paraspace the best as they moved forward. He also mentioned looking forward to the future and appreciated all private reach outs in the last week.

Paraspace funds allegedly missing

Paraspace has been involved in a funds mismanagement saga involving 2,909 Ether(ETH), about $5.4 million. On March 18, a price slippage attack on the protocol started the saga. 

BlockSec, a crypto-security firm, intercepted the attack, and the bad actors could not access the money. After removing the assets from the protocol, they returned them to Paraspace. However, the Paraspace team claims that only 50% went to their treasury. Hence, they claim Ruan made away with the money and called for his forceful removal from his CEO position.

However, Ruan has since defended the accusations saying that “the mischaracterization by them is absurd” and that he is not hiding anything. 

On May 17, Yubo Ruan confirmed that Yao and Schmidt had agreed to hand over the multi-signature and the social media permissions. However, they asked to remain recognized for their project contributions.

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